CHAPTER 16. WINERY PERMIT - Texas Statutes

ALCOHOLIC BEVERAGE CODE

TITLE 3. LICENSES AND PERMITS

SUBTITLE A. PERMITS

CHAPTER 16. WINERY PERMIT

Sec. 16.01. AUTHORIZED ACTIVITIES. (a) Except as provided by

Section 16.011, the holder of a winery permit may:

(1) manufacture, bottle, label, and package wine containing not

more than 24 percent alcohol by volume;

(2) manufacture fruit brandy and:

(A) use that brandy on the winery permit holder's permitted

premises for fortifying purposes only; or

(B) sell that brandy to other winery permit holders;

(3) import or buy fruit brandy from a permit holder authorized

to manufacture fruit brandy and use that brandy on the winery

permit holder's permitted premises for fortifying purposes only;

(4) sell wine in this state to or buy wine from permit holders

authorized to purchase and sell wine, including holders of

wholesaler's permits, winery permits, and wine bottler's permits;

(5) sell wine to ultimate consumers:

(A) for consumption on the winery premises; or

(B) in unbroken packages for off-premises consumption in an

amount not to exceed 35,000 gallons annually;

(6) sell the wine outside this state to qualified persons;

(7) blend wines; and

(8) dispense free wine for consumption on the winery premises.

(b) The holder of a winery permit may manufacture and label wine

for an adult in an amount not to exceed 50 gallons annually for

the personal use of the adult. Any amount of wine produced under

this subsection is included in the annual total amount that may

be sold by the holder under Subsection (a)(5). An adult for whom

wine is manufactured and labeled under this subsection is not

required to hold a license or permit issued under this code.

(c) The holder of a winery permit may conduct wine samplings,

including wine tastings at a retailer's premises. A winery

employee may open, touch, or pour wine, make a presentation, or

answer questions at a wine sampling.

Without reference to the amendment of subsec. (d) by Acts 2003,

78th Leg., ch. 1051, Sec. 1, Acts 2003, 78th Leg., ch. 1119, Sec.

3 repealed subsec. (d)

(d) The holder of a winery permit may sell wine to ultimate

consumers for consumption on or off winery premises and dispense

free wine for consumption on or off the winery premises.

(e) The holder of a winery permit may dispense wine for

consumption on the premises of the winery under Section 16.07.

Acts 1977, 65th Leg., p. 416, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 2116, ch. 819, Sec. 1,

eff. June 13, 1979; Acts 1981, 67th Leg., p. 2212, ch. 515, Sec.

1, eff. Aug. 31, 1981; Acts 1993, 73rd Leg., ch. 934, Sec. 27,

eff. Sept. 1, 1993; Acts 1997, 75th Leg., ch. 998, Sec. 1, eff.

Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1257, Sec. 1, eff. Sept.

1, 2001; Acts 2003, 78th Leg., ch. 1051, Sec. 1, eff. Sept. 1,

2003; Acts 2003, 78th Leg., ch. 1119, Sec. 1, 3, eff. Sept. 13,

2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

275, Sec. 1, eff. September 1, 2009.

Sec. 16.011. PREMISES IN DRY AREA. A winery permit may be

issued for premises in an area in which the sale of wine has not

been authorized by a local option election. A holder of a permit

under this section may engage in any activity authorized under

Section 16.01 except that the permit holder may sell or dispense

wine under that section only if the wine is:

(1) bottled in this state; and

(2) at least 75 percent by volume fermented juice of grapes or

other fruit grown in this state or a lesser percentage

established by the commissioner of agriculture under Section

12.039, Agriculture Code.

Added by Acts 2003, 78th Leg., ch. 1119, Sec. 2., eff. Sept. 13,

2003

Amended by:

Acts 2005, 79th Leg., Ch.

878, Sec. 3, eff. June 17, 2005.

Sec. 16.02. FEE. The annual state fee for a winery permit is

$75.

Acts 1977, 65th Leg., p. 416, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 2116, ch. 819, Sec. 1,

eff. June 13, 1979; Acts 1983, 68th Leg., p. 1343, ch. 278, Sec.

6, eff. Sept. 1, 1983.

Sec. 16.03. IMPORTATION FOR BLENDING. The holder of a winery

permit may, for blending purposes only, import wines or grape

brandy. The wine or grape brandy may be purchased only from the

holders of nonresident seller's permits. The state tax on wines

imported for blending purposes does not accrue until the wine has

been used for blending purposes and the resultant product placed

in containers for sale.

Acts 1977, 65th Leg., p. 416, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 2116, ch. 819, Sec. 1,

eff. June 13, 1979.

Sec. 16.04. FEDERAL PERMIT REQUIRED. A winery permit may be

granted only on presentation of a winemaker's and blender's basic

permit of the federal alcohol tax unit.

Acts 1977, 65th Leg., p. 416, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 2116, ch. 819, Sec. 1,

eff. June 13, 1979.

Sec. 16.05. OPERATING AGREEMENTS BETWEEN PERMIT HOLDERS. (a)

The holder of a winery permit may engage in any activity

authorized by that permit on the permitted premises of another

winery permit holder under an agreement between the permit

holders that is approved by the commission and that describes

with specificity the nature, duration, and extent of the

activities authorized by the agreement.

(b) The commission shall adopt rules regulating the shared use

of winery premises under this section to ensure administrative

accountability of each permit holder and a strict separation

between the businesses and operations of the permit holders.

Added by Acts 2005, 79th Leg., Ch.

878, Sec. 4, eff. June 17, 2005.

Sec. 16.06. PARTICIPATION IN CERTAIN OFF-PREMISES WINE

EVALUATION ACTIVITIES. (a) For the purpose of participating in

an organized wine tasting, wine evaluation, wine competition, or

literary review, the holder of a winery permit may deliver wine

produced and manufactured by the holder to locations that are not

licensed under this code for the purpose of submitting the wine

to an evaluation at an organized wine tasting competition

attended primarily by unlicensed persons or by a wine reviewer

whose reviews are published if:

(1) no charge of any kind is made for the wine, delivery, or

attendance at the event; and

(2) the commission consents in writing to the delivery.

(b) In connection with events authorized by Subsection (a) of

this section, the holder of the winery permit may dispense wine

to individuals attending the event and discuss with them the

manufacture and characteristics of the wine.

Added by Acts 1989, 71st Leg., ch. 142, Sec. 1, eff. May 25,

1989.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 3.001, eff. September 1, 2009.

Sec. 16.07. WINE SAMPLING. (a) The holder of a winery permit

may conduct wine samplings, including wine tastings, on the

permitted premises. The holder of the permit may collect a fee

for the wine sampling.

(b) A sampling event authorized by this section may not be

advertised except by on-site communication or by direct mail.

(c) A person other than the holder of a permit or the holder's

agent or employee may not dispense or participate in the

dispensing of wine under this section.

(d) A person authorized to dispense wine under this section:

(1) may serve a person more than one sample; and

(2) may not serve a sample to a minor or to an obviously

intoxicated person.

(e) A person who receives a sample may not remove the sample

from the permitted premises.

(f) For the purposes of this code and any other law of this

state or a political subdivision of this state, the holder of a

permit, during the sampling of wine under this section, is:

(1) not the holder of a permit authorizing the sale of alcoholic

beverages for on-premises consumption; and

(2) not considered to have received any revenue from the

on-premises sale of alcoholic beverages.

Added by Acts 1997, 75th Leg., ch. 998, Sec. 2, eff. Sept. 1,

1997.

Sec. 16.08. WINE FESTIVALS. (a) At an event that is approved

by the commission, organized to celebrate and promote the wine

industry in this state, and held in whole or in part on the

premises of the holder of a winery permit, the permit holder may:

(1) sell wine to consumers for consumption on or off the

holder's premises; and

(2) dispense wine without charge for consumption on or off the

holder's premises.

(b) The holder of a winery permit may sell wine to the holder of

a temporary permit issued under Chapter 27, 30, or 33 for an

event that is approved by the commission and organized to

celebrate and promote the wine industry in this state.

(c) Repealed by Acts 2005, 79th Leg., Ch. 878, Sec. 10(1), eff.

June 17, 2005.

Added by Acts 2001, 77th Leg., ch. 1001, Sec. 2.02, eff. Sept. 1,

2001.

Amended by:

Acts 2005, 79th Leg., Ch.

878, Sec. 10(1), eff. June 17, 2005.

Sec. 16.09. DIRECT SHIPMENT TO CONSUMERS. (a) The holder of a

winery permit may ship wine to the ultimate consumer, including

ultimate consumers located in dry areas. Delivery must be by the

holder of a carrier permit.

(b) All wine shipped to an ultimate consumer by the holder of a

winery permit must be in a package that is clearly and

conspicuously labeled showing that:

(1) the package contains wine; and

(2) the package may be delivered only to a person described in

Subsection (c).

(c) Wine shipped by the holder of a winery permit may not be

delivered to any person other than:

(1) the person who purchased the wine;

(2) a recipient designated in advance by such purchaser; or

(3) a person at the delivery address who is age 21 or over.

(d) Wine may be delivered only to a person who is age 21 or over

after the person accepting the package:

(1) presents valid proof of identity and age; and

(2) personally signs a receipt acknowledging delivery of the

package.

(e) The holder of a winery permit may not:

(1) sell or ship wine to a minor;

(2) deliver wine to a consumer using a carrier that does not

hold a carrier's permit under this code; or

(3) deliver to the same consumer in this state more than nine

gallons of wine within any calendar month or more than 36 gallons

of wine within any 12-month period.

Added by Acts 2005, 79th Leg., Ch.

36, Sec. 1, eff. May 9, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

346, Sec. 1, eff. September 1, 2009.